Darden Restaurants CEO Rick Cardenas announced during an earnings call on Friday that the Bahama Breeze restaurant chain could be sold off or see its locations converted to other brands.
Darden Restaurants own Olive Garden, Longhorn Steakhouse, Ruth’s Chris Steak House and several other chains along with the embattled Caribbean-inspired brand.
Last month, Darden unexpectedly closed 15 Bahama Breeze locations. There are 28 remaining, primarily in Florida but also spread across other states including Delaware, Georgia, Michigan, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia and Washington.
As Fox Business reports, Cardenas told investors that the company is “considering strategic alternatives” for those locations, including the possibility of selling the chain outright.
Cardenas said that Darden had come to the “difficult decision” that Bahama Breeze and its brand “are not a strategic priority for us” after a review.
He added: “We also believe that this brand and these restaurants have the potential to benefit from a new owner.”
The Bahama Breeze brand was created by Darden in the 1990s, and is known for its Caribbean-inspired food, tropical drinks and cocktails. Restaurants have an island-themed atmosphere and often offer live music. Dishes range from seafood, chicken, steaks, and signature appetizers, like Jamaican Jerk Wings and Firecracker Shrimp.
Cardenas said the chain no longer meets “the criteria” for its portfolio of brands, and the company is therefore “not going to be putting a lot of investment into Bahama Breeze.”
Darden also owns Yard House, Cheddar’s Scratch Kitchen, The Capital Grille, Chuy’s Seasons 52 and Eddie V’s.
On the same call, Cardenas announced that Darden recorded $3.27 billion in sales during the last quarter of its fiscal 2025 year, up 10.6% from the same three months the previous year. Net earnings came in at $303.8 million.
“Our adherence to our winning strategy, anchored in our four competitive advantages and being brilliant with the basics, led to a successful year,” said Cardenas. “Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value.”
Announcing the 15 restaurant closures last month, a Darden spokesperson said: “We continually evaluate the performance of all our restaurants. Closing a restaurant is a difficult choice because it impacts our team members and guests. However, we believe this is the right decision because it will allow Bahama Breeze to focus on its highest performing restaurants and strengthen the brand’s overall performance.”
